This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Sonic Management Discusses Q3 2012 Results - Earnings Call Transcript

Stocks in this article: SONC

Lastly, I would like to point out that remarks made during this conference call are based on time-sensitive information that is accurate only as of today's date, June 20, 2012. The archive replay of this conference call webcast will be available through June 27, 2012. This call is the property of Sonic Corp. Any distribution, transmission, broadcast or rebroadcast of this call in any form without the expressed written consent of the company is prohibited.

Finally, we have scheduled this call, which includes the Q&A portion to last one hour. If we have not gotten to your question within that hour time slot, please contact me at (405) 225-4846 and we'll make the appropriate arrangements to answer your questions.

With that out of the way, I'll turn the call over to Cliff Hudson, the company's Chairman and Chief Executive Officer.

J. Clifford Hudson

Thank you, Claudia, and good afternoon to all of you on the phone. We appreciate your engagement with us today and appreciate your interest in our third quarter results and the current business performance. As you saw from the earnings release we put out earlier today, our system wide same-store sales for the quarter increased 2.8%. I would add a little color commentary to that number, we're particularly pleased with it given that our third quarter results this quarter ended May are lapping over a very strong prior year period when we introduced very successfully, the 6" All Beef Hot Dogs to our menu March and April of 2011.

It's also the second consecutive quarter we saw the same-store sales growth following the 3.5% increase we reported in the second quarter, and of course, positive same-store sales fiscal year-to-date as well. Our view is that these results reflect improvements in a number of things in our business: The food quality that we offer our customers, the service that we offer, each of these having been implemented over the last 2 to 3 years, as well as our customers’ corresponding improvement in their perception of our food, our service and the value that we offer, a very quantitative feedback that we've had from our customers over time. And this has been complemented more recently with the layered day-part promotional strategy, and I believe we're seeing a more effective creative format in our television advertising as well. So these elements now remain in place as we go forward and give us confidence that we can sustain positive same-store sales as we move forward.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs